Newcastle’s commercial revenue decreased in the last financial year through last June, but we have the new Wonga deal starting next season for four seasons, but because of the poor name of the company, a lot of Newcastle fans are unhappy the club is bring sponsored by a pay-day loan company.
Wonga start their shirt sponsorship next season
It’s the best deal Newcastle have had for a shirt sponsor ever, according to Derek Llambias, and we think it’s around £6M a year for four years, but’s that’s 25% or even less of the money some big clubs in England like Chelsea, Manchester United and Liverpool receive from their shirt sponsors.
Wonga are also paying money to the Youth Academy and they have paid money up front to immediately have the name of St. James’ Park restored to the stadium.
Mike Ashley had named the stadium after his company – in a very controversial move – and then had somebody pay Newcastle United to have the name changed back to what it should always have been – not a bad business deal – but there are still far too many Sports Direct signs all over St. James’ Park.
Derek LLambias has talked about Wonga, and he says they are a cut above a pay-day loan company:
“It seems to be flavor of the month to criticize the deal, but you have clubs with betting companies and drink companies.” “Wonga are above the pay-day loan companies. They are the cream of that group.”
“They have not asked us for our database, they are not trying to sell loans to our database, they are trying to show they are a financial institution that is trying to give something back to us.” “We should be privileged we have a sponsor who is paying fair money and who wants to help.”
Pay-day loan companies charge ridiculously high interest rates on short-term loans – to the very people who are short of money and cannot afford to pay in the first place.
In the USA, pay-day loan companies are banned in many states – and they are not allowed in North Carolina – because of the dubious nature of their business.
But like it or not, Wonga will be on the shirts of Newcastle United for the next four seasons.
You can also reach Ed at email@example.com